Key facts
- Ueno bank is facing regulatory scrutiny and an administrative investigation.
- Central bank president Carlos Carvallo previously worked at ueno.
- Fitch Ratings changed ueno's securities outlook to negative.
- Paraguay's Banking Association stated the central bank's response was incomplete.
Paraguay's central bank and its president are under increasing pressure to resign due to concerns over their supervision of ueno bank, a rapidly expanding digital lender with political connections. Senators from both ruling and opposition parties have called for the central bank's leadership to be removed, despite its role in securing the country's investment-grade status. The situation has tested Paraguay's reputation as an emerging destination for foreign capital. Ueno bank, which has grown significantly and manages approximately $800 million to $850 million in public funds, is undergoing a preliminary administrative investigation into loans issued to related companies. While the central bank and ueno maintain that regulatory processes are independent and that no wrongdoing has been found, lawmakers and business groups have expressed dissatisfaction with the information provided.